Nomura sees Indian economy to grow at 6% in 2015
21/07/2014 00:14
India is set to be Asia's biggest turnaround story and the country's GDP growth is expected to rise to over 6 per cent in FY 2015 and over 7 per cent in FY 2016, says a Nomura report. According to the Japanese brokerage firm, 2014 would mark an inflection point and 2016 will be a watershed year as Indian economy will start outpacing China, reported PTI. "We believe India is at an inflection point. Under Prime Minister Narendra Modi's new reform-minded government, the medium-term outlook is much improved," Nomura said in a research note. "We expect real GDP growth to rise from an average of 4.7 per cent in 2013-14 to 6.3 per cent in 2015, 7.1 per cent in 2016 and 7.7 per cent in 2017," Nomura said. The RBI's inflation fight is likely to go 'hand-in-hand' with the proactive business oriented Narendra Modi government's strong mandate to cut red tape and jump-start supply-side reforms, it added. "It is not an exaggeration to expect India to stand out as the biggest emerging market turnaround story in the next five years," Nomura added. Moreover, the Indian economy is starting to turn around as inflation is abating, the current account deficit is narrowing, forex reserves are accumulating and growth is just starting to rise.
21/07/2014 00:14
India is set to be Asia's biggest turnaround story and the country's GDP growth is expected to rise to over 6 per cent in FY 2015 and over 7 per cent in FY 2016, says a Nomura report. According to the Japanese brokerage firm, 2014 would mark an inflection point and 2016 will be a watershed year as Indian economy will start outpacing China, reported PTI. "We believe India is at an inflection point. Under Prime Minister Narendra Modi's new reform-minded government, the medium-term outlook is much improved," Nomura said in a research note. "We expect real GDP growth to rise from an average of 4.7 per cent in 2013-14 to 6.3 per cent in 2015, 7.1 per cent in 2016 and 7.7 per cent in 2017," Nomura said. The RBI's inflation fight is likely to go 'hand-in-hand' with the proactive business oriented Narendra Modi government's strong mandate to cut red tape and jump-start supply-side reforms, it added. "It is not an exaggeration to expect India to stand out as the biggest emerging market turnaround story in the next five years," Nomura added. Moreover, the Indian economy is starting to turn around as inflation is abating, the current account deficit is narrowing, forex reserves are accumulating and growth is just starting to rise.
